Question - The following data are for Sholpan Company for year 1.
work in process inventory, beginning balance: $100,000
work in process inventory, ending balance: $120,000
total manufacturing costs: 300,000
under-applied manufacturing overhead: 30,000
finished goods inventory, beginning balance: 150,000
finished goods inventory, ending balance: 160,000
corporate headquarters administrative expenses: 57,000
labor rate variance: 15,000 unfavorable
labor efficiency variance: 7,000 favorable
wages payable, beginning balance: 12,000
wages payable, ending balance: 14,500
interest expense: 17,800
materials price variance: 21,000 favorable
materials quantity variance: 24,000 unfavorable
Compute Sholpan's COST OF GOODS SOLD for year 1, after making all necessary adjustments. Note: Assume that Solpan chooses the easiest mehtod for the end-of -year closing of the variances and the under applied overhead.